DEPARTMENT: Physical Development Administration
FILE TYPE: Regular Action
TITLE
title
Public Hearing To Receive Comments On Draft Dakota County Fiscal Year 2026 One-Year Action Plan For Community Development Block Grant, HOME Investment Partnerships, And Emergency Solutions Grant Programs
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PURPOSE/ACTION REQUESTED
Conduct a public hearing to receive comments on the draft Dakota County Fiscal Year (FY) 2026 One-Year Action Plan (2026 Action Plan) for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Programs.
SUMMARY
The Dakota County Community Development Agency (CDA) administers the federal CDBG, HOME, and ESG programs on behalf of Dakota County. These federal programs receive annual grants in amounts determined by Congress to be used towards housing and community development activities. The 2026 Action Plan outlines the strategies and objectives for CDBG, HOME, and ESG funds to local governments and housing providers in Dakota County. The proposed activities for the U.S. Department of Housing and Urban Development (HUD) funds meet the priorities established in the 2025-2029 Five-Year Consolidated Plan approved by Resolution No. 25-314 (June 24, 2025). The Executive Summary of the draft 2026 Action Plan and the public hearing notice affidavits are attached. The 2026 Action Plan must be submitted to HUD by June 1, 2026. The County Board will be asked to approve the 2026 Action Plan on May 19, 2026.
CDBG. Dakota County was allocated $2,015,752 in FY 2026 CDBG funds, which is a 6.46% increase from FY 2025. Proposed uses for the FY 2026 CDBG grant are as follows: affordable housing rehab (64%), public services (12%), public facilities (4%), neighborhood revitalization (2%), down payment assistance (3%), planning (2%), and grant administration (13%). There is an additional estimated $350,000 for residential rehab activities from revolving loan income, which can only be used for residential rehab projects. Based on applications received from participating communities, the CDA recommends that 23 city and township activities, two Countywide activities, and one grant administration activity be funded.
HOME. The Dakota County HOME Consortium was allocated $2,258,228.07, which is a 2.85% increase from FY 2025. Including program income, the FY 2026 HOME allocation is $3,070,410.20. Proposed uses for the Dakota County HOME funds totaling $918,712.28, including program income, are affordable rental housing (36%), affordable homeowner housing (36%), Community Housing Development Organization (CHDO) activities (13%), and grant administration (15%). The CDA recommends that the four Dakota County activities receive HOME funds.
ESG. Dakota County was allocated $166,414 in FY 2026 ESG funds, which is a 1.03% increase from FY 2025. Proposed uses for the FY 2026 ESG funds include emergency shelter operations (60%), rapid re-housing activities (28%), homelessness prevention activities (1.5%), the Homeless Management Information System (3%), and grant administration (7.5%). The Affordable Housing Coalition recommended approval of the draft ESG budget on February 12, 2026.
RECOMMENDATION
recommendation
Dakota County and CDA staff recommend the County Board conduct a public hearing to receive comments on the draft Dakota County FY 2026 One-Year Action Plan.
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EXPLANATION OF FISCAL/FTE IMPACTS
For FY 2026, Dakota County will receive a CDBG grant of $2,015,752, a HOME grant of $918,712.28, including program income (Consortium total of $3,070,410.20), and an ESG grant of $166,414.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Dakota County is an Entitlement County for funds through the Community Development Block Grant (CDBG) Program and Emergency Solutions Grant (ESG) Program and a Participating Jurisdiction for the HOME Investment Partnerships (HOME) Program; and
WHEREAS, the Dakota County Community Development Agency (CDA) administers the CDBG, ESG, and HOME programs on behalf of Dakota County, thereby requiring agreements between the U.S. Department of Housing and Urban Development (HUD) and Dakota County for the CDBG, ESG, and HOME funds and between Dakota County and the Dakota County CDA for CDBG, ESG, and HOME program administration; and
WHEREAS, HUD requires the development and submission of the Fiscal Year (FY) 2026 One-Year Action Plan that proposes the allocation of the annual CDBG, HOME, and ESG funds to local governments and housing providers in the County; and
WHEREAS, CDA staff has worked with participating communities and agencies to identify CDBG, HOME, and ESG activities for FY 2026; and
WHEREAS, the proposed activities for HUD funds meet the housing and community development priorities identified in the 2025-2029 Five-Year Consolidated Plan; and
WHEREAS, the Dakota County FY 2026 CDBG allocation is $2,015,752 with $350,000 of anticipated program income, the Dakota County FY 2026 HOME allocation is $918,712.28, including program income (Consortium total of $3,070,410.20), and the Dakota County FY 2026 ESG allocation is $166,414; and
WHEREAS, CDA staff recommends allocating FY 2026 CDBG funds to 23 eligible activities for cities and townships, two Countywide activities, and one grant administration activity as follows: affordable housing rehab (64%), public services (12%), public facilities (4%), neighborhood revitalization (2%), down payment assistance (3%), planning (2%), and grant administration (13%); and
WHEREAS, CDA staff recommends allocating FY 2026 HOME funds to four eligible activities as follows: affordable rental housing (36%), affordable homeowner housing (36%), CHDO activities (13%), and grant administration (15%); and
WHEREAS, CDA staff recommends allocating FY 2026 ESG funds to five eligible activities as follows: emergency shelter operations (60%), rapid re-housing activities (28%), homelessness prevention activities (1.5%), the Homeless Management Information System (3%), and grant administration (7.5%); and
WHEREAS, HUD requires a public hearing to receive comments and inform the public on the draft Dakota County 2026 One-Year Action Plan that outlines the strategies and objectives for the proposed allocation of FY 2026 CDBG, ESG, and HOME funds; and
WHEREAS, the Notice of Public Hearing was published in the Dakota County Tribune on March 27, 2026, and in the Star Tribune on April 2, 2026, and posted on the websites of participating cities, the Dakota County CDA website at www.dakotacda.org, and the Dakota County website at www.co.dakota.mn.us.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners conducted a public hearing for April 21, 2026, at 9:00 a.m. in the Board Room, Administration Center, 1590 Highway 55, Hastings, MN, to receive comments on the draft Dakota County Fiscal Year 2026 One-Year Action Plan, including proposed Community Development Block Grant Program activities funded with a budget of $2,015,752, HOME Investment Partnerships Program activities funded with a budget of $918,712.28, including program income (Consortium total of $3,070,410.20), and Emergency Solutions Grant Program activities with a budget of $166,414.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Draft Dakota County FY 2026 Action Plan Executive Summary
Attachment: Affidavit of Publication and Public Hearing Notice
Attachment: Presentation Slides
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Stwora
Author: Maggie Dykes